Raffles Education Limited has announced it expects to receive approximately RMB270.68m (S$49.89m) in net cash proceeds following the compulsory acquisition of its land by the People’s Republic of China (PRC) government. The land, located in Gu’an County, Hebei Province, was acquired in 2008 for RMB190 million and was designated for educational and scientific purposes.
The acquisition, announced on 30 January 2026, is part of urban planning needs for the Langfang Development Zone. The total compensation agreed upon is RMB293m (S$54m), payable in two phases. The first phase of RMB150m is due within a week after the transfer of a portion of the land, whilst the second phase of RMB143.26m is expected by the end of 2026.
Chairman and CEO of RafflesEducation, Chew Hua Seng, stated, “This represents a pragmatic and value-accretive outcome for the Group, particularly against the backdrop of the challenging property market conditions in China.” He noted that despite the book value of the land being higher than the sale price, the transaction provides certainty and strengthens the company’s net cash position.
The land’s restricted use for educational purposes and adverse changes in regulations have hindered its development, making it difficult to market. The proceeds from this acquisition are expected to significantly enhance RafflesEducation’s financial standing, representing a substantial portion of its market capitalisation of approximately S$206 million as of 17 August 2026.
